Implications and Consequences:
+Provides an opportunity for earnings management.
+ Reflect the current period’s true and fair results.
-Requirements for annual impairment testing of goodwill and other non-amortised intangible assets.
-Difficulties surrounding the identification of a cash-generating unit.
-Challenges in projecting cash flows and estimating various assumptions for the testing of value in use.

Kolb’s TEL with Paul’s Critical Thinking Components: IAS 36 Impairment of assets-assess of key features
Objects/Events: To prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognise an impairment loss. To also specifies when an entity should reverse an impairment loss and prescribes disclosures. (IASC Foundation Education)

Worldviews:
Institutional Investor: likely to know the long term stability of business by reviewing the current true worth of assets.
Standard Setters: To ensure that assets are carried at no more than their recoverable amount, and to define how recoverable amount is determined. (Deloitte Touche Tohmatsu, 2009)

Assertions: Option2 =the reversal of an impairment loss on intangible assets and goodwill should be recognised in the current period if, certain conditions are met:
•an external event caused the recognition of the impairment loss in previous periods, and subsequent external events clearly and demonstrably reverse the effects of that event in a way that was not foreseen in the original impairment calculations; OR
•the impairment loss arose on an